- In extended trading, the shares were trading at $51.89 (approximately Rs. 3,900).
- Dell's revenue increased by 16% in the fourth quarter.
- VMWare would be spun off as a separate public company.
Dell Technologies said on Thursday that it expects its PC backlog to grow in the first quarter owing to supply chain bottlenecks and announced a quarterly earnings shortfall, sending its stock down 7% in extended trade.
Over the last year, the company's sales were boosted by a pandemic-fueled demand for PCs. However, a continuing worldwide chip shortage and supply chain concerns are putting a strain on Dell, as lengthier lead times and part shortages have resulted in increased component and freight prices.
According to IBES data from Refinitiv, the business earned $1.72 (approximately Rs. 130) per share on an adjusted basis, falling short of Wall Street's forecast of $1.95 (about Rs. 146). Dell's stock finished down 1% on Thursday in Texas. In extended trade, they were trading at $51.89 (approximately Rs. 3,900).
"As we invest in the company, we expect opex (operating expenditure) as a proportion of sales to be slightly higher than in FY22," finance head Tom Sweet said.
Nonetheless, sales increased 16 percent to $27.99 billion (approximately Rs. 210553.37 crore) in the fourth quarter, above analysts' projections, while revenue and profit forecasts for the first quarter exceeded estimates.
Dell's client solutions segment - which comprises desktop PCs, laptop computers, and tablets - increased sales by a quarter in the three months ending January 28.
The corporation finalised the spin-off of its cloud computing subsidiary VMware Inc, in which it possessed an 81 percent share, in November. Dell previously stated that VMWare will become a stand-alone public company.
